Jun. 16--Lincoln National Corp. plans to sell more than $1 billion in stock
and debt to repay the federal government for a bailout it received last
year.

The life insurance and financial services company, with
headquarters in Radnor, Pa., is marketed to customers as Lincoln
Financial Group and employs about 600 in Hartford.

Lincoln National
announced Monday plans to repurchase the U.S. Treasury's preferred
shares, worth $950 million, issued under the Treasury's Capital Purchase
Program. The company's stock was up 47 cents, to $27.88, Tuesday on the
New York Stock Exchange.

Lincoln National will buy back the shares
using net proceeds from a $335 million common-stock offering, a $250
million senior-notes offering and cash.

An additional $500 million in
senior notes will be used as a long-term financing solution to support
reserves of the company's insurance subsidiaries, the company said.

"As we have said, we ended the year in a strong capital position, and
our first quarter results reflected the strength of our business model,"
said CEO Dennis R. Glass. "The repurchase of the CPP preferred shares
combined with securing long-term financing for a portion of our life
insurance reserves completes a series of capital initiatives in support
of our strong ratings and gives us additional financial flexibility as
we look to invest in our core businesses."

The Treasury will still
hold warrants -- a right to buy -- for about 13 million shares of
Lincoln National's common stock at an exercise price of $10.92. The
company doesn't plan to buy back the warrants, which, at Tuesday's
closing stock price, could be sold for a profit of about $220.5 million.

Two life insurers with operations in Connecticut, Lincoln National and
The Hartford Financial Services Group, took part in the Troubled Asset
Relief Program, or TARP. The Hartford repaid the Treasury $3.4 billion
in March, not including interest and dividends.